By OGJ editors
HOUSTON,Nov. 6 -- South Africa's Department of Minerals and Energy in early October granted a manufacturing license to PetroSA for its Project Mthombo—an $11 billion, 400,000 b/d refinery to be built in the Coega industrial development zone outside Port Elizabeth.
KBR has completed a prefeasibility study for the project, and PetroSA has received about 30 bids for the feasibility and the front-end engineering and design phases. These are expected to be awarded shortly, according to PetroSA Chief Executive Sipho Mkhize.
PetroSA said that a strong focus will be given to "maximum black economic-empowerment participation," and emphasized that "proven experience in projects of the planned refinery's size and nature" was a primary consideration.
PetroSA more recently named UK-based KBC Process Technology Ltd. as technical and commercial services advisor for the development.
HSBC, London, is project financial adviser for the refinery. HSBC will provide fiscal guidance and manage project investment funding and structuring arrangements for PetroSA.
A final decision on constructing the project will be made, possibly in 2010, after the feasibility and FEED studies are completed. The refinery is expected to be in operation in 2014.
